Commission Meetings

INTERNAL AUDIT REPORT 


Limited Contract Compliance Audit 
Stellar Bambuza SEA, LLC 

January 2023 – June 2023 

Issue Date: June 5, 2024 
Report No. 2024-07 

This report is a matter of public record, and its distribution is not limited. Additionally, in accordance with
the Americans with Disabilities Act, this document is available in alternative formats on our website.

          Stellar Bambuza SEA, LLC 

TABLE OF CONTENTS 

Executive Summary .............................................................................................................................................. 3 
Responsible Management Team ........................................................................................................................ 3 
Background ............................................................................................................................................................ 4 
Audit Scope and Methodology ............................................................................................................................ 5 
Appendix A: Risk Ratings..................................................................................................................................... 6 














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          Stellar Bambuza SEA, LLC 

Executive Summary 
Internal Audit (IA) completed an audit of the Lease and Concession Agreement (Agreement) between 
Stellar Bambuza Sea, LLC and the Port of Seattle (Port). 
The period audited was January 1, 2023, through June 30, 2023. The audit was performed to determine
whether concession fees were complete, properly calculated, and remitted timely to the Port. 
Stellar Bambuza Sea, LLC operates the Swarovski storefront, the Seattle Made storefront and the New
Stand, a combined coffee, bakery, and convenience storefront. 
During our audit, we identified no exceptions to our performed procedures. 
We extend our appreciation to management and staff of the Airport Dining and Retail, and the
Accounting & Financial Reporting (AFR) Departments for their assistance and cooperation during the
audit. 



Glenn Fernandes, CPA 
Director, Internal Audit 







Responsible Management Team 
Lisa Lam, Acting Director, Accounting and Financial Reporting 
Khalia Moore, Senior Manager, Airport Dining and Retail 
Jeff Wolf, Director, Aviation Commercial Management 


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          Stellar Bambuza SEA, LLC 
Background 
On October 4th, 2017, The Port of Seattle (Port) entered into a lease agreement (AIR002240) with
Stellar Bambuza Sea, LLC. 
Percentage fees were due in arrears, to the extent the percentage fees were higher than the monthly
MAG (Minimum Annual Guarantee) which is paid in advance. Effective January 1, 2023, only the
percentage fee payments are made since MAG is not considered until the end of the lease year. The
MAG in 2023 was $1,667,688.09. 
Percentage Fees are: 
16% of annual gross sales less than $8,000,000 
18% of annual gross sales between $8,000,000 - $9,000,000 
20% of annual gross sales greater than $8,000,000 

The table below reflects 2021, 2022, and 2023 Gross Sales and Percentage Fees: 
Year              Gross Sales           Percentage Fees 
2021              $9,735,213               $1,607,043 
2022              11,509,930                 1,961,986 
2023               9,955,545                 1,651,109 











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          Stellar Bambuza SEA, LLC 

Audit Scope and Methodology 
We conducted the engagement in accordance with Generally Accepted Government Auditing Standards 
and the International Standards for the Professional Practice of Internal Auditing. Those standards
require that we plan and conduct an engagement to obtain sufficient, appropriate evidence to provide a
reasonable basis for our findings and conclusions based on our engagement objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and conclusions based on our
engagement objectives. 
The period audited was January 2023 through July 2023 and included the following procedures: 
Concession Fees Completeness, Accuracy, and Timeliness 
• Validated that the percentage fees for non-specialty and specialty categories were calculated
correctly and in accordance with the lease revenue thresholds. 
• Agreed Concessionaire’s monthly general ledger sales data to what was provided to the
Accounting & Financial Reporting (AFR) Department.
• Agreed point of sale summary reports to the general ledger.
• Obtained the audited Schedules of Gross Sales Report, the Independent Certified Public
Accountant, and compared the report to year-end gross sales data reported to AFR. 
• Reviewed the Profit & Loss statements for variances. 
• Reviewed a random sample of invoices to determine if they were paid on time and for the full
amount charged. 
• Validated that concessionaire is certified through OMWBE WA and confirmed with management
that they are reflected as such on the ACDBE participation report submitted to the FAA.







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          Stellar Bambuza SEA, LLC 

Appendix A: Risk Ratings 
Findings identified during the audit are assigned a risk rating, as outlined in the table below. Only one
of the criteria needs to be met for a finding to be rated High, Medium, or Low. Findings rated Low will
be evaluated and may or may not be reflected in the final report.
Financial      Internal                                               Commission/
Rating                                   Compliance      Public 
Stewardship  Controls                                         Management 
High probability
Non-compliance
Missing or not                       for external audit   Requires
with Laws, Port
High       Significant     followed                          issues and / or     immediate
Policies, 
negative public     attention 
Contracts 
perception 
Moderate
Partial
Partial controls                        probability for
compliance with
external audit       Requires
Medium   Moderate                  Laws, Port
Not functioning                      issues and / or      attention 
Policies 
effectively                               negative public
Contracts 
perception 
Low probability
Functioning as   Mostly complies                      Does not
for external audit
intended but     with Laws, Port                        require
Low      Minimal                                   issues and/or
could be        Policies,                             immediate
negative public
enhanced       Contracts                          attention 
perception 










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